How do a Newbie Invest in the Stock Market by Agwu Chukwuemeka O.

The stock market is where the buying and selling of money is consummated through the exchange of financial instrument or asset, especially stocks and shares. Investing through the stock market can be done by two approaches; these are through the primary and the secondary segment of the market.

Investing through the primary segment entail the obtaining of available offer prospectus, analyzing the prospectus or consult your financial adviser whether the investment is worthwhile. You don’t make any investment decision without advice from your financial adviser, a lot of people have been hurt by making the wrong investment in the stock market. Such stocks, has caused cognitive dissonance on their on part thereby depriving themselves of the golden opportunities to create wealth from the stock market.

Fill the application forms. The application forms could be filled online where you will state the quantity you are subscribing for and the amount. Thereafter, you will submit the form for processing. Usually, a share certificate is mailed to the subscriber which is an evident given to the shareholder. The other approach, which is investing through the secondary segment, you can approach a stockbroker and inform him of your desire to buy shares of a particular companies quoted on the stock exchange.

The broker who is a registered member of the stock exchange will give you forms to fill. You will specify the exact share you wish to buy and the desired unit of each. An account be opened in your name by the broker for the records of funds you deposited for the purchase of the share thereby completing the transaction.

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